Peer-to-peer lender Ratesetter just raised £13m from Neil Woodford's fund and Artemis

Lynsey Barber
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Fintech firm RateSetter is planning to launch an Innovative Finance ISA (Source: Getty)

Peer-to-peer lender RateSetter has raised fresh cash from fund managers which values the firm at more than £200m.

The seven-year-old lender has raised £13m from existing investors, including star fund manager Neil Woodford's Woodford Investment Management and Artemis.

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"It is important to keep up the momentum of investing in our platform and this further injection of capital, coupled with the appointment of Paul Manduca as chairman, lays the ground for an important new phase of development for our business," said founder and chief executive Rhydian Lewis.

"There has never been more confidence in RateSetter’s future – we have already delivered more than £70m in interest to our lenders and, as we continue to scale up, we look forward to delivering even more impressive results.”

The fresh capital raise comes ahead of the launch of its Innovative Finance ISA (Ifisa), though the firm is still awaiting full approval as a p2p lender from the Financial Conduct Authority. Along with others, p2p lenders have been operating under an interim license while the watchdog has assessed such fintech institutions since taking over regulation of them.

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Funding Circle and Zopa, which along with Ratesetter are the UK's three largest p2p lenders, have both received the green light in recent weeks.

RateSetter now boasts more than 300,000 investors and borrowers who have lent more than £1.8bn. City heavyweight and man from the Pru Manduca, chairman at the insurer, was named the lender's non-executive chairman earlier this month.

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